Does 80/20 work for loyalty schemes in China?

This article was originally published on

By Viewpoints|October 31, 2016

Chinese airlines are grappling with the theory and practice of frequent flier programmes, not only how to make the schemes appeal to travellers in a growing market but also how to use them to generate revenues.

The 80/20 rule - as in 80% of revenue comes from 20% of members - was discussed and the arguments resonate globally. Do airlines focus all their attention on the one-in-five members who already engage with the scheme, or is there any mileage (no pun intended) in trying to convert members who are not taking part?